Chunghwa Telecom Announces Discrepancies in 115 Q2 Consolidated Financial Report Due to Differences Between T-IFRSs and IFRSs Accounting Standards

1. Date of Fact: 115/08/10

2. Financial Reporting Period: 115 Q2

3. Accounting Principles Adopted for Domestic Listed Securities (in Chinese): Prepared in accordance with the Financial Reporting Standards for Securities Issuers and IAS 34 'Interim Financial Reporting' recognized and promulgated by the Financial Supervisory Commission (hereinafter referred to as T-IFRSs).

4. Differences in Financial Information for Domestic Listed Securities (in Chinese): The consolidated net profit of the Company and its subsidiaries (hereinafter referred to as the Group) for the periods from April 1 to June 30, 115, and from January 1 to June 30, 115, calculated under T-IFRSs, amounted to NT$11,266,165 million and NT$21,873,887 million, respectively. The net profit attributable to owners of the parent was NT$10,641,391 million and NT$20,751,322 million, with basic earnings per share of NT$1.38 and NT$2.68. As of June 30, 115, the consolidated total assets were NT$553,627,387 million, consolidated total liabilities were NT$171,548,938 million, and consolidated equity was NT$382,078,449 million.

5. Accounting Principles Adopted for Overseas Issued Securities (in Chinese): Prepared in accordance with IAS 34 'Interim Financial Reporting' issued by the International Accounting Standards Board (IASB) (hereinafter referred to as IFRSs).

6. Differences in Financial Information for Overseas Issued Securities (in Chinese): The consolidated net profit of the Group for the same periods under IFRSs was NT$12,732 million and NT$22,854 million, with net profit attributable to owners of the parent of NT$12,087 million and NT$21,698 million, and basic earnings per share of NT$1.56 and NT$2.80. As of June 30, 115, the consolidated total assets were NT$553,441 million, consolidated total liabilities were NT$172,702 million, and consolidated equity was NT$380,739 million.

7. Reasons for Differences (in Chinese): The primary difference in profit and loss arises from the estimation of undistributed earnings tax under T-IFRSs and IFRSs. Additionally, during its state-owned period, the Company recognized installation and setup fees and public phone card revenues upon cash receipt, as required by government regulations. Upon corporatization, under government administrative order, the Company transferred its operating assets and liabilities at book value to form the current entity, with the excess net value over capital recorded entirely in capital surplus. Under T-IFRSs, no adjustment is required, and the amount remains in capital surplus. However, under IFRSs, such installation fees should be deferred retrospectively and recognized as revenue over the service period, classified as retained earnings. Thus, capital surplus must be reduced and retained earnings increased. This adjustment does not affect total equity.

8. Other Matters to be Disclosed: All matters concerning profit distribution and shareholders' equity are based on financial statements prepared under T-IFRSs.